Abstract: Despite the relatively "egalitarian" (little pay for performance) structure of military compensation, those who do better on tests of proficiency in their military occupation are likely to re-enlist t those who do worse, and this difference is not primarily due to the Army's unwillingness to allow its worst performers to re-enlist. In contrast, those with the best scores on the general ability test given prior to enlistment are likely to re-enlist.